In the above-linked analysis, we note that the drop-off in GOES not only mirrored market sentiment (the GOES MMI® fell as industry participants told us that they saw price weakness), but also likely fell for a couple of other reasons. The first has to do with imports, or where plenty of competition exists. The second involves new Department of Energy requirements said to go into effect this year.

These new requirements would essentially force US GOES consumers to upgrade materials, and some of these materials only come from offshore sources. We have yet to confirm whether those new regulations went into effect. Therefore, our suggestion to GOES buyers appears in opposition to what we might tell a buyer of one of the more volatile metals: buy only what one needs and ride the GOES price wave down.

Of course, if the regulations do not go into effect, we might expect to see greater price support for GOES materials.